floater investment & finance definition
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Debt securities that have a variable interest rate that is tied to another interest rate instrument, such as the 10-year U.S. Treasury note rate.
Definition
Floater
A debt issue that has a floating interest rate in relation to another debt instrument.
RELATED TERMS ...
Reverse floater
Sono obbligazioni a tasso fisso che incorporano però un contratto che, a partire da una certa data, ha l'effetto di mutare il tasso fisso in tasso variabile (ovvero un Interest Rate Swap).
FLOATER - A colloquial term for a security with a variable or "floating" interest rate. Compare: INVERSE FLOATER. See: LOWER FLOATER; VARIABLE RATE; VARIABLE RATE DEMAND OBLIGATION.
Floater
An insurance policy that covers specific items of personal property, such as jewelry.
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Floater
A bond whose interest rate varies with the interest rate of another debt instrument, e.g., a bond that has the interest rate of the Treasury bill +.25%.
Floater (floating security): A floater is a security whose value or coupon is determined by the performance of an index, such as a 1 month LIBOR (London Inter-Bank Offered Rate) or a security such as the 91-day Treasury bill.
Superfloater
A floating-rate CMO tranche whose rate is based on a formulaic relationship to a representative interest rate index.
Support tranche ...
Super Floater - A floating-rate class that pays a rate of interest that resets periodically as a multiple of the benchmark index.
Support Class - (see Companion Class) ...
Inverse floater Derivative whose coupon rate moves in an inverse manner to the market interest rate.
Ratchet Floater A One Way Floating Rate Note (q.v.). real option Definition: An option that involves tangible objects - such as bricks and mortar, pipelines and equipment - rather than financial instruments and cash flows, ...
inverse floater A fixed income instrument which has a coupon rate or interest rate that varies... inverse relationship A relationship between two numbers in which an increase in the value of one...
Pink rubber ducky floaters are life savers. Stop loss points are capital savers.
As we said before, reversals can happen at any time. Retracements can turn into reversals without warning.
Bonds with a variable interest rate (floaters), which changes every three or six months in line with short-term euro market interest rates (LIBOR or Euribor). The coupon may also be linked to the inflation rate.
They may not be as flashy as GlobalSantaFe's (NYSE: GSF ) decadent drillships, but ENSCO's new floaters will get the job done.
Fitch Rates Wells Fargo Stage Trust, Series 2011-96C Floater & Residual Certificates
Publish Date: Aug 25, 2011 11:44 AM
Fitch Withdraws 'F1+' Rating on Mass School Bldg Auth (MA) CP Notes Series A
Publish Date: Aug 25, 2011 11:43 AM ...
The interest rate of floating rate notes, or floaters, is variable rather than fixed. After each interest period, e.g. three, six or twelve months, the issuer of the bond pays the interest and states the interest rate for the next period.
Also known as "corridor bond", "index range note", "range accrual note", or "index floater".
Fallen Angel
1. A bond that was once investment grade but has since been reduced to junk bond status.
Inverse Floaters- The coupon varies inversely to an index. As the floating rate class of securities within the issue is larger than the inverse floating rate tranche, ...
 See also: Float, Interest, Market, Interest Rate, Securities
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